Germany’s [B]Current Account[/B] surplus is expected to print at 8 billion euro in June from 3.7 billion in the previous month as exports grow 0.9%, outpacing a 0.7% increase in imports. Although this would mark a bit of an improvement on a monthly basis, the outcome still falls firmly within the downward trajectory that has been in place since the surplus peaked in the third quarter of 2007. Indeed, economists polled by Bloomberg predict that net exports will contribute an average of 3.72% to overall economic growth this year and in 2010, the smallest in 6 years. While Germany’s current account has been eroding for the better part of the past two years, its US counterpart has been narrowing. Indeed, the US external deficit peaked in the three months to September 2006 and has narrowed by a whopping $113.3 billion to date. Germany has a deep trade relationship with the US, so a continuation of this trajectory implies long-term downward pressure on EURUSD as capital outflows overwhelm inflows into the Euro Zone’s largest economy and top exporter.